Nissan to end biz integration talks with Honda

TOKYO, Feb. 6 — Nissan Motor Co. President Makoto Uchida on Thursday told Honda Motor Co. President Toshihiro Mibe of his intention to call off talks on a proposed business integration between their companies.

The two leaders held a meeting at Honda’s headquarters in Tokyo as the discussions on the matter, which began last December, seem to have broken down in just two months due to disagreement about Nissan’s restructuring plan.

Nissan and Honda plan to make an announcement on the fate of their merger talks in mid-February, after their respective in-house procedures. They are seen continuing to consider future plans regarding cooperation mainly over electric vehicle development and automotive software.

READ: Nissan shares fall as reports say Honda merger talks off

In the talks, the two automakers aimed to reach a final agreement in June to set up a holding company in summer 2026 that would put them under its wing, in order to boost their cooperation.

But Honda recently proposed to make Nissan a subsidiary, as Nissan was struggling to come up with restructuring measures following its poor financial performance.

Nissan rejected the proposal as it wanted to maintain its equal footing with Honda. Based on a decision at its board made Wednesday, Nissan sought to rescind the basic agreement with Honda regarding the business integration.

The latest turn of events will likely force both automakers to reconsider their strategies. It is also seen impacting Mitsubishi Motors Corp., in which Nissan has a roughly 27 pct stake.

Honda, Nissan, and Mitsubishi Motors may explore possible collaboration with new partners, as surviving market competition alone is expected to be difficult with new industry rivals from the United States and China on the rise amid the growing popularity of EVs.